Canadian Investors Issue Climate Change Policy Statement
by Robert Kropp

The Responsible Investment Association calls on the federal and provincial governments of Canada to
develop policies that will encourage a transition to a low-carbon economy.

SocialFunds.com --
Canada has more than its share of problems relating to climate change. The extraction of bitumen
from oil sands in the province of Alberta has been described as "the most destructive project on
Earth," leaking millions of gallons of contaminated water into the ground and emitting unusually
high levels of greenhouse gases (GHGs). Because of oil sands development, Canada faced fines in
2012 for failing to reach its emissions reduction commitments under the Kyoto Protocol; instead, it
chose to withdraw from the process entirely.

In 2012, a coalition of institutional
investors organized by Ceres wrote to a trade
group of 12 major oil sands producers in October, recommending the reduction of GHG emissions from
oil sands extraction "to at least that of conventional oil production." But the investors also
expressed skepticism that "these concerns can be adequately resolved while oil sands development
continues on its present trajectory."

Also, TransCanada, the pipeline company
headquartered in Canada, is seeking permission from the Obama administration for construction of
the controversial Keystone XL pipeline, which would carry crude oil from the oil sands to ports in
the southern US. Facing widespread opposition from environmentalists and other advocates, the
administration has yet to announce a final decision on whether to permit construction.

“In response to the severe threats posed by climate change, the Responsible
Investment Association has put forward the a policy recommendation to the federal and provincial
governments to encourage the transition to a low carbon economy,” the statement reads.

“We believe that
investors can and should play an important role in addressing climate change
through investment
decision-making and corporate engagement,” the RIA stated. However, “markets do not provide
adequate incentives to shift investment toward less carbon-intensive activities, which would be in
the long-term interests of investors and the economy as a whole.”